Stock market investment basics

LEE COUNTY, Fla.-- The majority of American savers are invested in the stock market through their 401K's, savings plans or investment accounts.

James Gallagher, of Waterstone Financial, is explaining some of the basics of the stock market and has some important tips.

The basic idea of a stock is that you actually own part of the company. They used to issue stock certificates, but now stock trading is done electronically.

If you still have a stock certificate, deposit it as soon as you can because transferring ownership after you're gone can be difficult.

Stocks are categorized by size and stability, large cap versus small cap and growth versus income. Large, well established companies are less risky. Younger companies that are still growing can be a bigger financial risk. It's important to know how much you're willing to risk when it comes to buying stocks.

For more information, go to the Waterstone Financial website.

 

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